(July 2019)
ACORD forms are primarily designed for products that are associated with ISO policy forms, manual rules, and rating plans. This is not currently the case with their umbrella form. ISO introduced its umbrella program years after ACORD's application was in use.
ACORD forms are generally more detailed than individual company forms. This higher level of detail exists in order to increase their acceptability to more companies. Individual insurance carriers often prefer (or require) their own independent applications. However, it is worthwhile to check with each underwriter about the acceptability of ACORD forms. The trend toward standardization among insurers, as evidenced by ISO’s introduction of the umbrella policy, continues and this increases the chance that an ACORD form may be used for submitting new business to more companies.
Note: Only countrywide forms are discussed. Specific state ACORD forms are not discussed.
83–Personal Umbrella
Application
88–Personal Insurance
Application-Applicant Information Section
283–Personal Umbrella
Application Section
83–Personal Umbrella
Application
The umbrella application contains the following sections:
· Umbrella information - this section contains the limits and coverages requested by the applicant, along with their premiums
· Primary (underlying) policy information - this section is for listing the existing underlying coverages including the lines of business, type and amount of limit, name and policy number of the company providing the insurance and the policy period for each contract
· Property – this section is for listing all property that an insured either owns, leases or occupies, including farm land and vacant land. Locations and descriptions must be provided for all structures, included how the insured uses such structures.
· Automobiles and recreational vehicles - for listing the make/model (type, if applicable) and year of all autos that are available to the insured household including all recreational vehicles (such as motorized cycles/bikes, dune buggies, motorized carts, etc.) that are available to the insured household
· Watercraft - for listing the motor type, model, manufacturer, horsepower, value and year of all watercraft that are available (even via chartering) to the insured household
· Operators and operator information - the applicant must list the birth dates, names, licenses and vehicle or craft use for all of the licensed operators in the insured household. There are also questions requesting information on the existence of any impaired drivers and related treatment.
· Employment - fill in with job and employer information
The ACORD umbrella application also has a section on General Information that asks for detailed information regarding the following:
· Aircraft exposures
Note: This would include drones
· Swimming pools
· Trampolines
· Business use of property or vehicles and exposures, whether or not they’re covered by underlying policies
· Number of full-time employees
· Existence of any farming operations
· Participation in non-compensated duties
· The value of non-owned property on the insured premises
· Existence of tenants or exotic pets
· Whether coverage had been declined or not renewed
· Whether any lawsuits or similar actions are pending
· Any underlying policies excluding or restricting liability limits or coverage for specific exposures
Finally, there are statements involving binding coverage, fraud and right to privacy, as well as wording concerning the need in several states to discuss the selection/rejection of uninsured motorists coverage. Of course, space has been allotted for the signatures of both the applicant and the agent.
88–Personal Insurance
Application-Applicant Information Section
This application is used to collect applicant information that can be used for all personal lines coverage being requested. The form is designed to gather information for personal auto, umbrella, and watercraft, residential and personal inland marine insurance. It also has space to indicate other forms of coverage. It is not required when 83–Personal Umbrella Application is completed but it is necessary when 283–Personal Umbrella Application Section is provided.
Use of a single form to collect information pertinent to all coverages would make it unnecessary to duplicate answers on multiple forms. The information is very comprehensive and all questions should be answered thoroughly as any error could affect both underlying and excess coverage being requested.
Of course, the form’s use would have to be in situations where more than one type of coverage is being requested at the same time and that is unusual (and perhaps impractical) for personal lines accounts.
283–Personal Umbrella
Application Section
This application replaces the 83–Personal Umbrella Application when the umbrella is submitted as a part of an account. The information collected is very similar to that collected under ACORD Form 83–Personal Umbrella Application.
Note: Form 283 MUST be accompanied by ACORD Form 88, Personal Insurance Application-Applicant Information Section since the former does not, by itself, gather sufficient applicant information.